Mercedes-Benz Korea's new CEO tasked with recovering EV sales, corporate image

Mercedes-Benz Korea's new CEO Shirin Emeera / Courtesy of Mercedes-Benz Korea

Mercedes-Benz Korea’s new CEO Shirin Emeera faces a dual challenge of reviving the carmaker’s slowing electric vehicle (EV) sales and rebuilding consumer confidence.

Since assuming the role on July 1, Emeera has led Mercedes-Benz Korea at a pivotal moment as the German luxury carmaker rapidly loses ground to Tesla and BMW in Korea.

A veteran executive with more than two decades of experience, she most recently oversaw dealer network strategy and market management at the company's headquarters in Germany.

Industry officials expect her extensive expertise in retail operations and distribution strategy to play a key role in strengthening Mercedes-Benz Korea's newly introduced direct-sales system and restoring sales momentum.

Before assuming her current role, Emeera led Mercedes-Benz's operations in Sweden and Denmark, where she successfully guided the brand to the top position in the premium vehicle segment. Her track record has raised expectations that she can successfully steer the Korean unit even amid one of the carmaker's most challenging periods in recent years.

One of her immediate priorities will be stabilizing the Retail of the Future direct-sales model, which Mercedes-Benz Korea introduced in April. While the company views the initiative as a long-term strategy to improve customer experience and pricing transparency, many industry officials believe the transition temporarily weighed on its sales, as evidenced by the carmaker’s recent steep sales fall.

According to the Korea Automobile Importers & Distributors Association (KAIDA), Mercedes-Benz Korea's monthly sales fell from 5,419 units in March to 3,553 units in May, marking a 34.4 percent decline in just two months.

To regain momentum, the automaker plans to launch 10 new models in Korea during the second half of the year.

Mercedes-Benz Korea's all-new electric GLC SUV / Courtesy of Mercedes-Benz Korea

The centerpiece of the lineup will be the all-new electric CLA, the first Mercedes-Benz model equipped with the company's next-generation MB.OS operating system.

Mercedes-Benz Korea also plans to introduce the all-new electric GLC and all-new electric GLB SUVs before the end of the year, further expanding its EV portfolio.

The launches come as Korea's imported vehicle market continues to expand rapidly. Data from KAIDA also showed that new registrations of imported passenger vehicles here reached 184,032 units in the first half of the year, up 33.2 percent from a year earlier.

Tesla has driven the growth, with its first-half sales soaring 192.2 percent from a year ago. In contrast, Mercedes-Benz's share of Korea's imported passenger vehicle market fell sharply to 16.2 percent from 23.6 percent a year earlier, underscoring the increasing pressure on the luxury automaker.

Beyond intensifying competition, Emeera must also address lingering concerns over the brand's EV safety image.

Mercedes-Benz came under public scrutiny in 2023 after it was accused of failing to adequately disclose that some of its EVs were equipped with batteries supplied by Chinese manufacturer Farasis.

Consumer distrust deepened after authorities confirmed that an electric Mercedes-Benz involved in a high-profile apartment parking garage fire in Incheon was fitted with a Farasis battery, fueling broader concerns over EV safety and transparency.

Industry officials said restoring trust in Mercedes-Benz's EVs will be just as important as boosting sales.

"Mercedes-Benz Korea will need to quickly rebuild public confidence in its EVs if it hopes to recover the reputation it once enjoyed," an industry official said. "With Tesla rapidly expanding its market presence, the leadership of the new CEO will be more critical than ever."